Washington, DC, 09 April 2026 — Forest Trends has released a new report examining whether the EU Deforestation Regulation (EUDR) is beginning to influence forest governance beyond export supply chains serving the EU market.
How the EUDR Is Already Driving Forest Governance Reform: From Market Signal to Systemic Impact reviews early responses from producer country governments. It finds that while many early efforts focused on companies meeting traceability and due diligence requirements for EU-bound forest commodity exports, some countries are using the regulation as a catalyst for broader national reforms. These include national planning processes, legal and regulatory reviews, multi-stakeholder discussions, and the development of countrywide traceability and farmer registry systems.
“The real test of the EUDR is whether it creates isolated compliant supply chains for Europe, or whether it helps strengthen forest governance more broadly in producer countries,” said Kerstin Canby, Senior Director of Forest Trends’ Forest Policy, Trade, and Finance (FPTF) Initiative. “We are beginning to see early signals of wider reform in some countries, even before the EUDR starts implementation, but sustained political will, technical capacity, and inclusive processes will determine whether those changes take root.”
“The EU’s market power has real potential to influence forest governance in producer countries,” said Duncan Brack, the report’s lead author. “If reinforced by generous support and effective enforcement, and as long as it is not opened for renegotiation for a third time, the EUDR can play an important role in protecting forests, combatting climate change and leveling the playing field for responsible companies worldwide.”
The analysis highlights where progress is emerging.
Download the full report, How the EUDR Is Already Driving Forest Governance Reform: From Market Signal to Systemic Impact.
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Forest Trends works to conserve forests and other ecosystems through the creation and wide adoption of a broad range of environmental finance, markets, and other payment and incentive mechanisms.
Forest Trends’ Forest Policy, Trade, and Finance Initiative aims to promote policies which harness the power of market incentives for the legal, sustainable, and equitable trade in timber and other commodities harvested from forest landscapes.